The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Having rallied and broken the 1.3074 and 1.3197 levels, the euro-dollar currency pair now looks set to strengthen further, with eyes on the 1.3375 level of Dec. 12.
On further price extension, EUR-USD should target 1.3484, its Dec. 5 high, and possibly move higher toward its Dec. 2 high at 1.3547.
Its weekly relative strength index is bullish and pointing higher, suggesting further strength.
Alternatively, on any pullback, the euro-dollar currency pair will target the 1.3197 level and then the 1.3074 level, where a reversal of roles as support is likely to occur and turn the pair back up.
If EUR-USD takes out 1.3074, however, it will decline toward 1.2856/1.2875 level, its Dec. 29 low/January low.
Further down, support lies at 1.2624, where a loss will resume the pair's medium-term weakness and aim at 1.2587, its August 2010 low.
Overall, the euro-dollar currency pair continues to retain its corrective recovery tone as it looks to extend further bullish momentum.
-- Written by Mohammed Isah
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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.